What acc pays you for free!
Not many people realise that there is more to ACC than just medical cover and helping you pay the bills if you have to take time off work because of an injury. Did you know that your ACC levies also provide accidental death cover? Which means if you died in an accident, your family could get paid a small weekly amount by ACC for up to five years, if their case gets approved. They could also get help with paying for the funeral, if they apply for the right grants.
Let’s face it nobody likes the idea of their wife and kids struggling to pay the bills and losing the family home. So free money for the family is pretty bloody great but the pay-out is capped and they probably couldn’t survive easily off it. Don’t sweat it though, there are other options you could use to make sure your family is protected. This article covers everything you need to know.
Which members of your family can get ACC compensation?
The pay-out is only given to your immediate dependants and is provided on a weekly basis to help them survive after the sudden loss of income.
The ACC website describes ‘dependants’ as the following people:
Roughly how much money can they actually get?
If you died in accident and the case got approved, the total payments given out would be equal to 80% of your income, but would be spread out between the different family members/dependants. For example if you earned $1000 a week, then ACC would pay out $800. Here is an outline of how the money will be split up between your family:
If you want help knowing more about what you can do with ACC then click here
How long will it take for ACC to start paying out?
The length of time it takes to start making pay-outs is different for each case. Basically they can’t start processing payments until they’ve receive proof of the deceased person’s earnings and other information like how the person died and if it was an accident. ACC will generally contact your family to let them know if their claim has been approved or declined. So your family may not receive financial support immediately after you die, they could also get no support at all if their application is declined. Long story short, we recommend making sure you have private insurance set up to get them through the tough times.
ACC Funeral Grant
Funerals in NZ are seriously expensive, so your family can apply for a grant asking ACC to help pay for your funeral (but only if you die in an accident). Your family will need to fill in the right forms of the ACC website and if the application is approved, the fees will be paid directly to the funeral director or the executor of your will, when they proved ACC with an invoice for the expenses.
Private Insurance as a backup plan
ACC pay-outs are only given out if someone dies from an injury, not an illness and they aren’t guaranteed, applications have to meet specific criteria. If pay-outs are given, then they are limited and generally not enough for a family to survive on comfortably. So we recommend taking out private insurance to help your family survive. Options you could look at include life insurance, mortgage protection insurance and income protection insurance.
While you may be keen on the extra cost of taking private insurance, it covers illness, injury and unemployment (not just accidents like ACC). Better yet by restructuring your ACC cover and switching from ACC Cover Plus to ACC Cover Plus Extra you can lower your levies and put the money you save into private insurance so that you can rest easy that whatever happens your family is sorted.
Let’s face it nobody likes the idea of their wife and kids struggling to pay the bills and losing the family home. So free money for the family is pretty bloody great but the pay-out is capped and they probably couldn’t survive easily off it. Don’t sweat it though, there are other options you could use to make sure your family is protected. This article covers everything you need to know.
Which members of your family can get ACC compensation?
The pay-out is only given to your immediate dependants and is provided on a weekly basis to help them survive after the sudden loss of income.
The ACC website describes ‘dependants’ as the following people:
- partners from marriage, civil or de-facto unions who lived together
- partners who lived apart due to health, employment or imprisonment reasons
- separated partners who were supported financially by the deceased
- natural children or children for whom the deceased acted as a parent, ie step children
- anyone who was financially dependent on the deceased because of a mental or physical disability.
Roughly how much money can they actually get?
If you died in accident and the case got approved, the total payments given out would be equal to 80% of your income, but would be spread out between the different family members/dependants. For example if you earned $1000 a week, then ACC would pay out $800. Here is an outline of how the money will be split up between your family:
- Your partner (married or defacto) will receive 60% of the 80% that ACC pays out e.g. of the $800 that will be given out, your partner will get up to $480.
- Children under 18 will each get up to 20% of the 80% that ACC pays out. If the children are under the age of 16 that money will be paid to their caregiver e.g. of the $800 that will be given out, your kids will get up to $160.
- Children under 18 will not receive anything, unless they are enrolled in full-time study. If they are studying then they will receive the same amount of money as the other children (until their studies end).
- Mentally or physically impaired dependants will also each receive up to 20% of the 80% that ACC pays out e.g. of the $800 that will be given out, they will get up to $160.
If you want help knowing more about what you can do with ACC then click here
How long will it take for ACC to start paying out?
The length of time it takes to start making pay-outs is different for each case. Basically they can’t start processing payments until they’ve receive proof of the deceased person’s earnings and other information like how the person died and if it was an accident. ACC will generally contact your family to let them know if their claim has been approved or declined. So your family may not receive financial support immediately after you die, they could also get no support at all if their application is declined. Long story short, we recommend making sure you have private insurance set up to get them through the tough times.
ACC Funeral Grant
Funerals in NZ are seriously expensive, so your family can apply for a grant asking ACC to help pay for your funeral (but only if you die in an accident). Your family will need to fill in the right forms of the ACC website and if the application is approved, the fees will be paid directly to the funeral director or the executor of your will, when they proved ACC with an invoice for the expenses.
Private Insurance as a backup plan
ACC pay-outs are only given out if someone dies from an injury, not an illness and they aren’t guaranteed, applications have to meet specific criteria. If pay-outs are given, then they are limited and generally not enough for a family to survive on comfortably. So we recommend taking out private insurance to help your family survive. Options you could look at include life insurance, mortgage protection insurance and income protection insurance.
While you may be keen on the extra cost of taking private insurance, it covers illness, injury and unemployment (not just accidents like ACC). Better yet by restructuring your ACC cover and switching from ACC Cover Plus to ACC Cover Plus Extra you can lower your levies and put the money you save into private insurance so that you can rest easy that whatever happens your family is sorted.